The machinist strike at Boeing had an instant domino effect on the aviation industry, after Boeing spinout Spirit AeroSystems Holdings announced last week production cuts in airframes for Boeing jets at its plant in Wichita, Kan.
It is difficult to gauge the degree to which any extended strike at Boeing would affect the Connecticut aerospace industry. Connecticut itself has nearly 10,000 machinists, according to the U.S. Bureau of Labor Statistics. The agency does not classify them by industry.
Boeing”™s local influence is such that, in June 2007, Boeing estimated that Pratt & Whitney and other suppliers here could add 4,000 jobs if the company won a coveted fuel-tanker jet contract from the U.S. Air Force.
While Connecticut”™s aerospace industry revolves around United Technologies Inc. and its massive Pratt & Whitney aircraft engine and Hamilton Sundstrand avionics divisions, Fairfield County is also home to significant business partners, including Fairfield-based General Electric Co., which relies on Boeing both as a buyer of its jet engines as well as a supplier to its commercial jet leasing business. James McNerney, chief executive officer of Boeing, formerly was CEO of GE Aviation.
Stamford-based Aircastle Ltd. also buys jets from Boeing for lease to airliners and cargo companies.
Other significant Boeing suppliers have their headquarters in Fairfield County, including Crane Co. and Hexcel Corp. Boeing sales made up 13 percent of Crane sales last year and accounted for 25 percent of Hexcel sales.
Hexcel has already been dealing with delays from Boeing and its ballyhooed 787 Dreamliner program.
“We saw significant number of deferrals for materials intended for the 787, frustrating our inventory improvement programs,” said David Berges, CEO of Hexcel, in a July 29 conference call with investment analysts. “Despite concerns of fuel costs and the global economy, over 300 new orders were booked by Boeing and Airbus at (the) Farnborough Air Show, adding to their combined backlog that was already over 7,300 aircraft. Even a 30 percent cancellation scenario would leave a five-year backlog.”
At an Aug. 20 meeting of the Rocky Hill-based Aerospace Components Manufacturers, members indicated the Connecticut aerospace supplier industry had yet to show signs of leveling off despite the aviation industry”™s struggle with high fuel prices and a flagging economy. ACM members noted that U.S. companies are seeing an increase in business from Airbus due to the Euro”™s improved buying power in the United States, but added that they expect their European counterparts to improve productivity, which could have a long-range impact on area suppliers.
